SUMMER INTERNSHIP REPORT

TOPIC

“A study on customer relationship management practices in retail

store, Importance of consumer experience and sustainability”

POST GRADUATE DIPLOMA IN MANAGEMENT

(Batch 2021-23)
Under the Supervision
PROF. SONALI SINGH

Industry Mentor
Mr. ABHISHEK CHAUDHARY

SUBMITTED BY
AYUSHI AHUJA
PGMB 2109

JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)
TO WHOMSOEVER IT MAY CONCERN
This to certify that the Summer internship project report, titled “ A study on
customer relationship management practices in retail store, Importance of
consumer experience and sustainability” submitted by Ms. Ayushi Ahuja as partial
fulfillment of the requirement of the two-year PGDM (2020-2022)course, is a
bonafide work carried out by the student at our Institute.

This Summer Project Study is his/her original work and has not been submitted
to any other University/Institute.

Declaration
I hereby declare that I have completed my summer internship at Zara, and have
submitted this project report entitled A detailed study on “ on customer
relationship management practices in retail store, Importance of consumer
experience and sustainability” towards partial fulfillment of the requirements for
the award of the Post Graduate Diploma in Management 2021-2023.

This report is the result of my own work, no part of it has earlier comprised any
other report, monograph, dissertation, or book.

Signature
Ayushi Ahuja
PGMB2109
Jaipuria Institute of management, Noida
 Acknowledgment

I am using this opportunity to express my gratitude to everyone who supported me

throughout the course of this PGDM project. I am thankful for their aspiring
guidance, invaluably constructive criticism, and friendly advice during the project
work. I am sincerely grateful to them for sharing their truthful and illuminating
views on a number of issues related to the project.
I express my warm thanks to my industry mentor Mr.Abhishek Chaudhary and my
faculty mentor Prof. Sonali Singh, for their support and guidance during my
internship at Zara.

Thank You

Ayushi Ahuja
PGMB 2109
PGDM- MARKETING
Jaipuria Institute of Manageme, Noida

EXECUTIVE SUMMARY
For the fulfillment of the PGDM course they students must undertake a summer
internship project in an organization, I Ayushi Ahuja have been privileged to
complete my summer internship at Zara and the topic for that was A detailed study
on “ on customer relationship management practices in retail store, Importance of
consumer experience and sustainability”

Zara was founded in 1975 and is the flagship chain store of the Inditex group. It is
claimed that Zara needs just two weeks to develop a new product and get it to
stores, compared to the six-month industry average, and launches around 10,000
new designs each year. Zara has resisted the industry-wide trend towards
transferring fast fashion production. Perhaps its most unusual strategy was its
policy of zero advertising; the company preferred to invest a percentage of
revenues in opening new stores instead

This is the Internship report based on the two months-long internship program
that I successfully completed at Zara, under the floor operations department from
15/05/2022 to 15/07/2022 as a requirement of my MBA program.
I chose this topic because it helped me to understand the consumer behavior at zara
and also helped me to identify the customer relationship practices. It gave me an in
depth knowledge about sustainability initiatives that Zara has been talking forward
to create fast fashion less harmful and also give back to the environment.

This study is also helpful for the company as they can easily find the areas
where they are lacking and made the possible changes so that their sale and
product value increases in the market.

1.1 BACKGROUND

The topic of consumer behavior is one of the massively studied topics by

researchers and marketers in the past and is still being studied. Researchers
show different reasons why consumer behavior has been the topic of many
academics and researchers. One of the common views is that understanding
consumer behavior has become a factor that has a direct impact on the overall
performance of businesses (Kotler and Keller, 2012).
It is worth noting that consumer buying behavior is studied as a part of
marketing and its main objective is to learn the way how the individuals, groups
or organizations choose, buy use and dispose of goods and the factors such as
their previous experience, taste, price, and branding on which the consumers
base their purchasing decisions. This study will introduce some other areas of
research background of consumer behavior addressing the works
of researchers and marketers.
Many researchers have conducted studies and identified the relationship
between habits and previous experience in consumer buying decisions. Their
findings show that the personal habits and previous experiences of the
consumers have a direct impact on the consumers’ purchase decisions. They
also found that the image of the product has a crucial impact on the purchasing
decision of the consumer and further recommended that the product image
should continuously be improved in order to encourage the consumers towards
Purchasing.

1.2 SCOPE AND SIGNIFICANCE OF THE STUDY

The study was conducted in order to determine the purchase decision of

customers. To study whether the customer is satisfied with their purchase and
quality of products available at zara. It will also help us to identify whether the
consumer is satisfied with the service available at zara.

1.3 STATEMENT OF THE PROBLEM

The study is designed to conduct a satisfaction survey among the

customer at Zara, Saket . The organization wants to
analyze the satisfaction level of customers in the market and need to get
suggestions for its customers. The company wants to see whether the customers are
satisfied with the current offering of the products and to find out the areas which
need improvement.

1.4 OBJECTIVES OF THE STUDY

Primary Objective:-
A relative study of customer satisfaction towards Zara.

Secondary Objective:-
To find out the brand image in comparison to rival firms.
To find out the growth and standing in the minds of the customers.

1.5 RESEARCH METHODOLOGY

1.5.1 TYPE OF STUDY

This is a descriptive Study.

1.5.2 TYPE OF DATA USED

Primary and Secondary data are used for this study.

1.5.3 SOURCES OF DATA

Primary data are collected from random customers at Select City Walk, Saket.

1.5.4 POPULATION
The population under this study includes the customers of various age groups.

1.5.5 SAMPLING METHOD

The method of sampling was Convenient sampling.

1.5.6 SAMPLE SIZE

Hundreds of end customers are contacted for the study.

1.6.7 METHOD OF DATA COLLECTION

The method used for data collection was the survey and questionnaire
Method.

1.5.8 TOOLS USED FOR DATA COLLECTION

Questionnaire was administered among respondents to collect primary
Data. Secondary data are collected through Desk Research.
1.5.9 TOOLS USED FOR PRESENTATION OF DATA
The analyzed results are represented by formulating tables and charts based
on the information gathered.

1.6 LIMITATIONS OF THE STUDY

The findings of the study are confined only to Zara and hence the results cannot be
generalized to any other Organization.Time and resource constraints.
The respondents in many cases they're unwilling to provide all the
information due to their busy schedules.
The same information cannot be accessed due to its confidential nature.

ANAlYSIS

In the above pie chart, it shows the percentage of mens and women customers at
Zara. As per the above diagram 53.4% of the customers at Zara are women , while
on the other hand 46.1% of the customers are women. Which shows that the
majority of customers are women.
In the above pie chart we can see that that as per our study,only 3% of the
customers are of the age of 15-18 years while, 61.8% of the customers are of the
age group of 19-25 while on the other hand 17.1%of the customers are of the age
of 26-35 years old and about 17% of the consumers are are of the age of above
35%.

In the above pie chart we can state that 72.4 % of the respondents prefer offline
shopping while on the other hand only 27.6% of the respondents prefer online
shopping. Which states that the majority of the customers prefer offline shopping.
The above graph depicts how often people visit zara in online and offline mode.
Which shows that Majority of people prefer visit zara online and offline during
sale season, around 18-20% people prefer visiting zara offline and online during
beginning of new season and around 15% people prefer visiting zara monthly in
both online and offline mode and around 15% people prefer visiting online weekly
and around 3% prefer visiting zara offline weekly

The above graph shows the percentage of respondents satisfied with zara products,
which shows that majority of people are satisfied with zara as they have rated 5/5
or ⅘ for satisfaction level only 10% of people have rated ⅗ and 2% have rated 1
and 2 on 5.
Majority of the people think that prices of zara products are priced appropriately
while 20% people think that zara products can be priced better.

The above pie chart shows that around 89.5% of the respondents think that Zara follows
sustainable packaging while only 10.5% of the people think that some changes can be
made to make products more sustainable.
The above pie chart shows why people prefer buying products from zara, which
shows that 44.7% people prefer buying from zara because of the design while
47.4% people prefer buying from zara because of the quality while only 7.9%
people prefer buying from zara because of price.

Regression -
x satisfaction from products
Y feel that products are priced approp

SUMMARY
OUTPUT

Regression
Statistics
0.5943
Multiple R 982104
0.3533
R Square 092325
Adjusted R 0.3444
Square 504548
Standard 0.6792
Error 386468
Observatio
ns 75

ANOVA
Signific
df SS MS F ance F
0.0000
39.8 000188
18.4003 8239 411702
Regression 1 4483 18.40034483 088 7
33.6796
Residual 73 5517 0.4613651393
Total 74 52.08

P-
Coeffici Standar valu
Lower Upper Lower Upper
ents d Error t Stat e 95% 95% 95.0% 95.0%
2.8058 0.22831 2.3508 3.2608 2.3508 3.2608
Intercept 62069 76684 12.28929013 0 25612 98526 25612 98526
0.00
0000
0188
0.3982 0.06306 4117 0.2725 0.5239 0.2725 0.5239
2 758621 572511 6.315250659 027 860532 65671 860532 65671

satisfaction from
x products
feel that products are
Y priced appropriately

Interpretation - In the above data, Knot is acceptable and P is greater than 0.5,
hence there is no significant relationship between x and y.Dependent variable can
changes upto 35%.
 Introduction

Inditex is a Spanish multinational clothing company headquartered in Arteixo,

Galicia, Spain. It is made up of almost a hundred companies dealing in activities
related to textile design, production and distribution. Amancio Ortega, Spain's
richest man, and the world's third richest man, is the founder and current largest
shareholder. The current chairman of inditex is pablo isla.
Inditex operates over 5,500 stores worldwide and owns brands like Massimo Dutti,
Bershka, Oysho, Pull and Bear, Zara, and Tempe and also a low cost brand Lefties.
The majority of stores are corporate-owned franchises are only conceded in
countries where corporate properties cannot be foreign-owned.
The group designs and manufactures almost everything by itself, and new designs
are dispatched twice a week to zara stores. Most manufacturing is now in low labor
cost countries, mainly in Morocco, China, and Turkey, although much production
continues in Spain and Portugal, particularly for its Zara brand. In addition, inditex
has a factory for shoe design, production and distribution in the town of Elche, on
the Spanish mediterranean coast.

About Zara

Zara was founded in 1975 and is the flagship chain store of the Inditex group. It is
claimed that Zara needs just two weeks to develop a new product and get it to
stores, compared to the six-month industry average, and launches around 10,000
new designs each year. Zara has resisted the industry-wide trend towards
transferring fast fashion production. Perhaps its most unusual strategy was its
policy of zero advertising; the company preferred to invest a percentage of
revenues in opening new stores instead. This has increased the idea of Zara as a
"fashion imitator" company and low cost products. lack of advertisement is also in
contrast to direct competitors such as h&m and mango.
Zara was described by louis vuitton fashion director daniel piette as "possibly the
most innovative and devastating retailer in the world."

Industry Overview

The Indian retail industry has emerged as one of the most dynamic and fast-paced
industries due to the entry of several new players. it accounts for over 10% of the
country’s gross domestic product (gdp) and around eight% of the employment.
India is the world’s fifth-largest global destination in the retail space.India is the
world’s fifth-largest global destination in the retail space and ranked 63 in world
bank’s doing business 2020.
India is the world’s fifth-largest global destination in the retail space. In the fdi
confidence index, India ranked 16 (after the US, Canada, Germany, United
Kingdom, China, Japan, France, Australia, Switzerland, and Italy).
Zara, with an annual turnover of rs 405 crore, clocked a sales growth six times
more than India's largest apparel brand louis philippe and a tad higher than the
largest department chain shoppers stop.

In march 2013, inditex trent, the joint venture between zara and tata group,
reported high double digit growth of 56 percent in same-store sales in a market
where most retailers struggled for a single digit like-to-like growth due to a
slowdown in consumer spending in aspirational goods, the report added.

The key to its success is clearly its ability to chase fashion trends around the world,
move a catwalk design from the design stage to shop floor in a span of two weeks
and launch new lines in the quickest possible time with limited scope for reorders.
Zara offers trendy but inexpensive products that are sold in beautiful, high-end-
looking stores.
 Company Mission of Zara

ZARA official site expresses that the organization s brand vision is devoted to
following through on our clients needs. To improve your experience, they vow to
continually enhance our organization. They vow to convey new styles of working
or spending plan cordial materials.

Firm Mission of Zara

The following mission statements are adhered to by ZARA - Customers should

receive what they request unlike anyone else,they seek to contribute to the
sustainable development of society and the environment with
which they engage through business strategy and history growth.

ORGANIZATIONAL STRUCTURE

ZARA is a retail enterprise with numerous divisions and up to 400 workers. One of
the objectives of the temporary positions has been to find out about and grasp the
authoritative construction. The office is huge and essentially propels the brands
generally advancement and development. I had the valuable chance to explore the
objectives, authoritative construction completely, and what's more, the reliance of
every one of these divisions as a piece of my temporary position.

6 Minimum of Customer Service

1) Friendly Look
2) Always be available
3) Always offer alternatives
4) Always sell in fitting room
5) Cashier gives cash with both hands looking in eyes and says thanks
6) Manager makes more contact with customers.

Brand Timeline of Zara

● In 1988, the company began its international expansion by entering into

Portugal.
● In 1989, it entered the markets of the United States.
● During the 1990s, Zara spread to Mexico (1992), Greece, Belgium and
Sweden.
● In the early 2000s, Zara opened its first stores in Brazil, Japan and
Singapore, Russia and Malaysia China, Morocco Estonia, Hungary and
Romania (2004) the Philippines Costa Rica and Indonesia South Korea,
● In 2010, it opened its first store in India.
● In September 2010, Zara launched its online boutique. The site began in
Spain, Portugal, the UK, Italy, Germany and France. In India, it began in
2017.
● Zara introduced the use of Radio Frequency identification technology(RFID)
in its stores in 2014. The RFID chips work as security tags, which are
extracted from clothing when it is purchased and can be reused. The chip
 allows the company to assess better about the inventory left. When an item
is sold, the stockroom is immediately informed, so that a new item can be
brought. An item that is not on the mantelpiece can quickly be found with
the help of an RFID tag.
● In 2015, Zara was placed on 30th place, on Interbrand’s list of best global
brands.
● In 2019, Zara updated its logo.

In 2019 the Global Fashion Business Journal declared that while the textile
commerce of the world had gone down by 2.38%, in case of Zara it had risen by
2.17%

Value Proposition

● Being vertically integrated, Zara enjoys control over all its verticals like
design, manufacture, distribution, shipment, promotion, etc. It makes it
easier for the company to manage and maintain fluid communication
between the various stages of the company.
● In spite of there being a clash between the various strategies implemented,
Zara tries to synchronize all these strategies to work out a useful Business
model of Zara.
● Since it incurs most of its benefits from Europe, it can circumnavigate the
cost of vertical integration. Other companies cannot implement this
circumnavigation.
● It maintains the high quality of products by keeping its design and
manufacturing fronts near management.
● It uses the location strategy to increase sales by a setting-up stores near
luxurious brands to encourage people to purchase clothing and accessories
from Zara.
● Zara also utilises proprietary software to analyse the various upcoming
trends in fashion.
● The workforce utilised by Zara in association with high-quality machines
can provide high-quality clothing and accessories.
 Key Partners

These are the key partners of Zara:

● Inditex
● Manufactures from different companies
● Suppliers
● Producers
● Shop centres
● Corporate social responsibility organisation

Key Activities
These are the key activities of Zara:

● Design
● Manufacturing
● Logistics
● Shipping
● Customer service
● E-commerce
● Trends and forecasting
 Customer Relationship
Zara works according to the demand of the customer.

The customer relationship of Zara is:

● Iterate
● Brand awareness
● Free shipping. Free return.
● Customer impulse
● Scarcity

Customer Segments
The customer segment of Zara is as follows:

● Young market
● price-conscious customers
● people sensitive to latest trends
● women-60%, men-25%, fast-growing children-15%

Key Resources
The key resources of Zara are:

● Experienced store managers

● RFID technology
● Supply chain excellence
● Effective production and logistics process
● Using high-tech software

Zara Inventory Management

- Zara develops a business model that incorporates moderate prices with new
clothing styles faster than its competitors.
- It maintains design, production and distribution processes well to respond to
the quick shifts in consumer demands.
- They are flexible enough to produce 12000 new items annually.
- The company can design a new product and have finished goods in its stores
in four to five weeks.
- They believe in shortening the product life cycle =greater success in meeting
customer preferences
- They have a design team of 200 people, which produce 12000 new styles a
year.
- They keep a close watch on new trends and buying behavior through market
research.

Store Layout

- Clients can investigate the store and find garments all the more effectively
when it is spread out in a matrix.
- For the mens, womens, and children segments, there are different groups.
- The items are coordinated together in the different regions, like the
children's formal clothing, relaxed dress, and others.
- The region is actually used, and expansive passageways have been made
between the retires, racks, and bunches with the goal that clients can
undoubtedly peruse the product and peruse the dress
- The region is actually used, and wide passageways have been made between
the racks, retreats, and bunches to permit clients to handily peruse the
product and peruse the clothing.
- The situation of the installment counters permits the clients holding up in
line to at some point, go to confront the stores' different sides and sweep the
product.
- The most well known things are normally situated to one side of the section
since not many analysts feel that purchasers go to one side in the wake of
entering the store.
- Clients can all the more effectively go through the whole store, get their
dress, and afterward go change them all toward the finish of the store on the
grounds that the changing rooms are constantly kept toward the end.
- To feature their new assortment and draw buyers, life sized models are
commonly situated with the end goal that they are apparent to everybody
when you enter the store.
 VISUAL MERCHANDISING

- The most prominent portion of the store is typically where the newest trends
and collections are on display.
- One of the key components of merchandising is the placement of
mannequins around the store, especially at the entrance to new sections
where they display the newest collections and fashion trends.
- The most popular items and the newest collections are often displayed on the
right side of the entrance.
- The placement of their products in accordance with their color scheme so
that the clothing complements one another is one of the intriguing ideas
behind Zara.
- Their shoe selection is always put on display underneath the clothing so that
customers would be encouraged to buy them if they go
with the chosen outfit.

PRODUCTS / SERVICES AND PROCESSES/ FACILITIES

Zara Retail operation area is Retail in garment product like Western wear
collection,, Kids Wear collection, Menswear collection, Foot Wear collection,
Accessory and . At Zara, Saket products are arranged according to the customer
need and according to the Marketing Department product promotion and strategy.
 The brand offers menswear, womenswear and children clothing (zara kids), shoes
and accessories. The sub brand Zara TRF offers trendier and sometimes ediger
items for younger women and teenagers.

Market Size of Zara

Zara accounts for 70% of all sales of the inditex group. Notably, the zara market
share makes up 70% of the group's total profits. The owner of fashion brand Zara,
posted a 61% increase in sales and posted a profit of Rs149 crore during FY22,
reversing the performance from a year ago when its sales shrunk 28% and slipped
into its first ever loss in India due to covid-related lockdowns and strict
restrictions.Tata that runs 21 of zara stores in india, saw revenue expand to rs1815
crore last fiscal year.

Government Initiatives

● The government of India has allowed 51% foreign direct investment (FDI)
in multi-brand retail and 100% FDI in single-brand retail
● DIPP is likely to consider relaxing the sourcing norms for global retailers to
establish shops in india, as ikea is asking for further relaxation of mandatory
conditions
● The union ministry of finance has provided relief to the Rs 18,000 crore (us$
3.25 billion) software industry by replacing a multi-level structure of tax
deducted at source (tds) on distributors with a single tds. this would be
deducted by the first distributor—one who directly purchases packaged
software from a developer
 ● The government has also opened up the aviation sector and put up four psus
for disinvestment.
● The foreign direct investment (fdi) inflows in single-brand retail trading
during april 2000 to june 2012 stood at us$ 42.70 million, according to the
latest data released by department of industrial policy and promotion (dipp).
cash and carry represents an opportunity worth around rs 8,250 billion of the
rs 27,500 billion annual retail businesses in india.

Sustainability Steps By Zara

Inditex is known for their sustainability efforts in the apparel industry. At an early
onset, inditex developed a relationship with the united nations (UN) in an effort to
protect biodiversity, reduce consumption of resources, and combat climate change.
in 2001, Inditex became a party to the UN global compact which focuses on ten
principles focused on human rights, labor, environment, and anti-corruption and
has since also voluntarily adhered to
complying with the 17 sustainable development goals (SDG) set by the UN.
- 50% join life collection
They aim to have at least 50% of all our items commercialized in 2022
manufactured according to the join life standards.
100% renewable electrical energy in our own operations
They are working to ensure that the energy they consume in all their facilities
(central offices, logistics centers and stores) comes from renewable sources.

- Physical Stores
All Zara stores are eco-efficient, meaning they consume less energy and
water than conventional stores. They have developed an eco-efficient store
manual that defines standards for the design, construction and management
of their stores, to reduce water and energy consumption.
- To ensure that their stores meet these standards, they are implementing
centralised systems that allow them to programme lighting, heating and air
conditioning, among others, to suit what stores need at any given moment.
This way they control and optimize their energy consumption and reduce our
co2 emissions.
 - Carry bags
All the bags given to the customers in the stores are made from recycled
paper. Redesigning them has saved more than 30% of water during
production and reduced ink consumption by 70%.

- Elimination of plastic
At Zara, they have stopped giving our customers plastic bags, both in store
and for our online deliveries. Furthermore, they have pledged to not give any
single-use plastic to our customers by 2023.

- Zara packaging
All of our online store packaging is made from recycled cardboard, some of
which comes from cardboard salvaged from our logistical operations.
Furthermore, they prioritize the use of paper envelopes over boxes, to help
reduce the volume of raw material required and optimize our deliveries.

Road Ahead

2023
100% more sustainable cellulosic fibers
fibers obtained from the core of certain trees will be manufactured in accordance
with strict environmental standards, supporting the changing markets foundation
initiative to promote responsible viscose and modal production.
100% more sustainable cotton
all of our cotton will come from more sustainable origins: organic cotton, including
cotton from the organic cotton accelerator (oca), better cotton (bci) and recycled
cotton.
100% green to pack
They are working with the green to pack project, a global programme that aims to
redesign all our packaging to make it more sustainable by reducing the quantity of
raw materials they use and consolidating the materials to facilitate reuse and
recycling.
100% free of single-use plastics for customers
As part of the green to pack programme, they are redesigning all of our packaging,
labeling systems and security tags on our garments to guarantee that by 2023, our
customers will not be given any single-use plastics.
100% zero waste
they’re working to ensure that, in 2023, all waste generated at our headquarters,
logistics centers and stores will be reused or recycled.
2025
25% reduction of water impact in our supply chain
They are developing innovative projects to make more responsible use of the water
used in the processes needed to manufacture our garments. They are also working
to reduce and improve water management in processes for obtaining fibers, for
example in the cultivation of natural fibers like cotton and linen.
new plastics economy global commitment by the ellen macarthur foundation
This commitment, promoted by the ellen macarthur foundation in collaboration
with the UN environment programme, aims to reuse or recycle all the plastic they
use in our business, so that it can go back into the loop and reduce the amount of
unnecessary packaging.

100% more sustainable linen

all our linen will have a more sustainable origin: organic linen or recycled linen.
100% recycled polyester
all our polyester will be recycled or more sustainable in 2025, reducing the use of
new virgin raw materials.
2040
0 net emissions
Our commitment is to achieve climate neutrality by 2040. This means having zero
ghg emissions or offsetting those emitted into the atmosphere by means of a
transition to renewable energy and a more eco-efficient use of resources.

In addition, all wood used in our stores, as they'll as paper products such as bags
and labels, have received the pefc or fsc seals, guaranteeing that the entire
management process for the forest-sourced raw materials was conducted in a
sustainable and controlled way.
based on the standards of the u.s. green building council, which promotes
sustainability in the design, construction and operation of buildings, they are
working so that our stores reach the highest levels of sustainability. its leadership
in energy and environmental design (leed) seal is one of the leading sustainable
construction certifications worldwide.

They are currently working on a pilot project that will provide customers with the
option to choose whether they wish to receive their online orders in recovered and
reused boxes, which can help us reduce raw material consumption and the
generation of unnecessary waste.

paperless receipts (e-receipts)

As part of our online and physical store integration, they have developed a digital
receipt service for physical store purchases. e-receipts improve our customers’
experience when purchasing or returning goods, allowing a smoother transition
towards the elimination and minimisation of paper receipts.

Competitive Analysis

Two major competitors of zara are -

1) H&M
2) Mango

About H&M ( Competitor )

H & M Hennes & Mauritz AB (H&M) is a Swedish multinational retail-clothing
company, known for its fast-fashion clothing for men, women, teenagers and
children.
H&M exists in 43 countries and as of 2011 employed around 94,000 people. The
first store was opened on the high street of Västerås, Sweden in 1947. It had 2,325
stores at the end of 2011 and 2,629 stores at the end of August 2012. It is ranked
the second largest global clothing retailer, just behind Spain-based Inditex (parent
company of ZARA), and leads over third largest global clothing retailer, United
States based GAP Inc.
The design team in the company’s Sweden office controls the steps of production,
from merchandise planning to establishing specifications, and production is
outsourced to approximately 800 factories in Europe and Asia. These facilities are
used for horizontal division of labor, rather than being integrated.

About Mango (Competitor)

Mango is an internationally famous multinational which designs, manufactures and

markets women’s and men’s clothing and accessories. It can be differentiated for
having a highly-defined concept. The MANGO concept is based on an alliance
between a quality product, with an original design and a coherent and unified
brand image. Dressing the modern, urban women for her daily needs is the formula
we have analysed, adapted and applied in all the countries in which MANGO is
present: it has been and remains one of the keys to our commercial success and
international prestige.MANGO currently has a total of 1,220 stores in 91 countries
worldwide. Our expansion continues with the recent entry in countries such as
Georgia, Argel and Martinica. Our latest store openings have taken place in cities
of the stature of Ciudad del Cabo, Hanói, Boston, Jerusalén and Nantes

Zara Competitive Edge

- Zara, unlike its competitors DOES NOT use outsourcing

- Zara’s competitors face a lack of flexibility in changing orders based on
current trends.
 - Inventory costs are higher for competitors because orders are placed for a
whole season well in advance and then held in distribution facilities until
periodic shipment to stores.
- Thus, Zara has a competitive advantage especially in the area of product
development

As shown in the above table, zara is known for providing fast fashion and designer
clothes at reasonable prices. They keep up with the current trends and provide the
best quality products with reasonable prices.

Assortment Mix analysis of Zara, H&M and Mango

As shown in the above diagram, Zara is the most selling brand for shoes, jeans,
outerwear and shirts. On the other hand, mango is known for accessories, pants, T-
shirts and dresses. Lastly, H & M is known for their innerwears.

Swot on the basis on Analysis

STRENGTHS WEAKNESSES
Quality 1) Advertisement
Store Image 2) Lack of Promotional Offers
 3) Customers are not
particularly loyal to the brand

OPPORTUNITIES
THREATS
• Zara should explore the
• Others brand can attract
market of inner wear and
the customers who are not
night wear.
loyal

Suggestions

From the analysis we have done, we suggest Zara following things:

1) As the age group of 30 + constitutes a major percentage of Zara’s
customers, we should implement plans for their retention of this segment.
To achieve this we have proposed the following suggestions:
Price Deals –
• Special promotional offers must be given to the young professional & senior
executives
like providing special discounts if they show their business ID.
Loyalty –
• Loyalty Club Cards must be introduced to give rewards for frequent shopping
Advertisement –
• Zara must increase their advertisement budget to attract more customers and
increase awareness

2) The headquarters of Zara is located in Spain , so every garment that is made

undergoes quality control in Spain which is an additional cost of the
company. They should make different offices in different countries for
quality checks which will help them to decrease the cost and will also make
the process faster.

3) Zara should tap into an untapped market like - Inner wear , night wear and
swimwear as they have a huge loyal client base.

4) As the major percentage of Zara’s customers are above the age of 30, They
should add more options for formal wear as the demand for formal wear has
increased rapidly in the past few years.

Conclusion

In a nutshell, This internship has been an excellent and rewarding experience. I can
confidently say that I have learnt a lot from my experience at Zara. Needless to say
that Zara has an extraordinary and unique way of working. It has definitely given
me an insight into the retail world and has also given me an insight into the process
of store management. I believe that the time I've spent researching and discovering
was well spent and well worth it. I’ve learned the two importance of time
management and self motivation. I have also learnt that patience is a very
important practice and you have to be very patient and polite while working on the
floor. I am extremely grateful and thankful for giving me this opportunity to work
and learn. It is such an amazing organisation and gives me immense satisfaction
and knowledge.